Oct 5, 2026 · 13 min
Paul Scott reviews Quartix amid a quiet market morning
Morning Movers!
The episode offers a focused look at a personal holding while showing how technical disruption and sparse news shaped the commentary.
- 1Paul Scott’s delayed recording begins against an unusually quiet Monday news backdrop.
- 2Quartix supplies vehicle-telematics systems to small and medium-sized businesses and fleets.
- 3The commentary ends abruptly after its focused update on Quartix.
Don't miss
Paul Scott’s focused update on Quartix, a personal holding supplying telematics systems to SME customers, becomes the episode’s central moment before the recording ends abruptly.
The brief
Technical problems and a power cut delay Paul Scott’s morning market commentary, which begins against a notably quiet Monday news backdrop.
Scott turns to Quartix, a personal holding that supplies vehicle-telematics systems for small and medium-sized businesses and their fleets.
The episode’s narrow focus makes Quartix the central subject, with the company’s tracking and fleet-management activities anchoring the market update.
The commentary ends abruptly, leaving the Quartix update as the episode’s defining—and unfinished—moment.
What was said on this episode
14 statements · 9 positive · 5 negative
Quartix has low pricing, recurring revenue, low churn, and international growth.
“It's low priced. It's got exceptionally high recurring revenues, very little customer churn, and it's growing. It's growing internationally as well.”
Listen at 1:09
Quartix is mispriced on the low side.
“It is. It's just the wrong price if you ask me.”
Listen at 1:27
Quartix trades at approximately 13.9 times forward earnings.
“Anyway, the forward PE is only about 13.9 times.”
Listen at 1:38
Quartix is cheap and its 3% rise underreacts to the update.
“So I think that's really cheap. Only up 3% this morning, which I think is an underreaction.”
Listen at 4:09
Quartix’s recurring revenue makes a profit warning extremely unlikely.
“the recurring revenue nature of the business means that you're extremely unlikely to get a profit warning from this share”
Listen at 4:58
Quartix is experiencing good European growth.
“The European growth is good”
Listen at 5:37
Quartix’s UK and France operations dominate, while other European markets grow strongly.
“it's got— so UK and France almost is the main part of the business at Quartix, but other European geographies are also growing strongly.”
Listen at 5:39
Quartix is well positioned for future performance.
“Cortex is lined up, is set up beautifully, I think.”
Listen at 5:59
Ensilica lacks a proven business model and sustainable consistent profitability.
“it's a fairly recent float. We've described it as not really having a proven business model as yet.”
Listen at 6:31
Ensilica has more buyers than sellers and its shares are up 4%.
“it looks like there's a bit of two-way business in Insilica, but more buyers than sellers, so up 4%.”
Listen at 8:02
Hercules’s 9% rise to 37.5p is unjustified because the contract is not game-changing.
“I think that's a bit spurious to 37.5p because I don't think this is a game-changing contract and the forecasts haven't changed.”
Listen at 10:50
Hercules has a history of audit qualification and unsupported cash outflows.
“very accident-prone. We had a qualified audit opinion last time, I think, and there were accounting irregularities where they just couldn't provide any accounting evidence for some cash outflows.”
Listen at 11:20
Hercules’s unaccounted cash outflows make Paul Scott wary of the company.
“That makes me very wary. If you kept unaccounted for cash outflows, no, that's just appalling.”
Listen at 11:41
Listed companies should not have improper accounting practices.
“When you're a listed company, you can't have dodgy things going on.”
Listen at 12:23
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Featuring
Andy WaltersMentioned
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